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Questions # 1:

The government uses various tools within the realm of two broad categories of public policy-allocative policies and regulatory policies. In the context of public policy, laws that fall into the category of allocative policy include

Options:

A.

The Balanced Budget Act (BBA) of 1997

B.

The Health Insurance Portability and Accountability Act (HIPAA) of 1996

C.

Laws affecting health plan quality oversight

D.

Laws specifying procedures for health plan handling of consumer appeals and grievances

Questions # 2:

The Tidewater Life and Health Insurance Company is owned by its policy owners, who are entitled to certain rights as owners of the company, and it issues both participating and nonparticipating insurance policies. Tidewater is considering converting to the type of company that is owned by individuals who purchase shares of the company's stock. Tidewater is incorporated under the laws of Illinois, but it conducts business in the Canadian provinces of Ontario and Manitoba.

With regard to the state in which Tidewater is domiciled, it is correct to say that, from the perspective of both Ontario and Manitoba, Tidewater is considered to be the type of corporation known as:

Options:

A.

A foreign corporation

B.

An alien corporation

C.

A sister corporation

D.

A domestic corporation

Questions # 3:

While traditional workers' compensation laws have restricted the use of managed care techniques, many states now allow managed workers' compensation. One common characteristic of managed workers' compensation plans is that they

Options:

A.

Discourage injured employees from returning to work until they are able to assume all the duties of their jobs

B.

Use low copayments to encourage employees to choose preferred providers

C.

Cover an employee's medical costs, but they do not provide coverage for lost wages

D.

Rely on total disability management to control indemnity benefits

Questions # 4:

Antitrust laws can affect the formation, merger activities, or acquisition initiatives of a health plan. In the United States, the two federal agencies that have the primary responsibility for enforcing antitrust laws are the

Options:

A.

Internal Revenue Service (IRS) and the Department of Justice (DOJ)

B.

Office of Inspector General (OIG) and the Department of Defense (DOD)

C.

Federal Trade Commission (FTC) and the Department of Labor (DOL)

D.

Federal Trade Commission (FTC) and the Department of Justice (DOJ)

Questions # 5:

Determine whether the following statement is true or false:

Although most-favored-nation (MFN) clauses in contracts between health plans and healthcare providers are not per se illegal, they should be reviewed under the rule of reason analysis for antitrust purposes.

Options:

A.

True, because the Federal Trade Commission (FTC) ruled that MFN clauses are not per se illegal and the FTC encourages health plans to include them in provider contracts.

B.

True, because although MFN clauses are not per se illegal, they violate antitrust laws if they have a predatory purpose and an anticompetitive effect.

C.

False, because MFN clauses involve decisions by providers concerning the level of fees to charge, and thus they are per se illegal.

D.

False, because MFN clauses are not per se illegal, and thus they are exempt from antitrust laws and regulation by the FTC.

Questions # 6:

Regulators of health plans have set standards in a number of areas of plan operations. Requirements with which health plans must comply typically include

Options:

A.

providing enrollees and prospective enrollees with detailed information about various aspects of health plan policies and operations

B.

maintaining internal grievance and appeals processes to resolve enrollee complaints against the organization

C.

maintaining quality assurance programs that reflect the plan's activities in monitoring quality

D.

all of the above

Questions # 7:

In examining accountability in the current managed care environment, one is likely to find that combinations of various models of accountability are in operation. Under one model of accountability, the primary mechanisms for accountability are the mechanisms of the marketplace-failure to meet standards will result in a loss of demand for services. By definition, this model of accountability is called the

Options:

A.

Professional model of accountability

B.

Political model of accountability

C.

Due diligence model of accountability

D.

Economic model of accountability

Questions # 8:

Nightingale Health Systems, a health plan, operates in a state that requires health plans to allow enrollees to visit obstetricians and gynecologists without a referral from a primary care provider. This information indicates that Nightingale must comply with a type of mandate known as a:

Options:

A.

Direct access law

B.

Scope-of-practice law

C.

Provider contracting mandate

D.

Physician incentive law

Questions # 9:

Congress enacted three clauses relating to the preemptive effect of the Employee Retirement Income Security Act of 1974 (ERISA). One of these clauses preserves from ERISA preemption any state law that regulates insurance, banking, or securities, with the exception of the exemption for self-funded employee benefit plans. This clause is called the

Options:

A.

Savings clause

B.

Preemption clause

C.

Deemer clause

D.

De novo clause

Questions # 10:

Greenpath Health Services, Inc., an HMO, recently terminated some providers from its network in response to the changing enrollment and geographic needs of the plan. A provision in Greenpath's contracts with its healthcare providers states that Greenpath can terminate the contract at any time, without providing any reason for the termination, by giving the other party a specified period of notice.

The state in which Greenpath operates has an HMO statute that is patterned on the NAIC HMO Model Act, which requires Greenpath to notify enrollees of any material change in its provider network. As required by the HMO Model Act, the state insurance department is conducting an examination of Greenpath's operations. The scope of the on-site examination covers all aspects of Greenpath's market conduct operations, including its compliance with regulatory requirements.

From the following answer choices, select the response that identifies the type of market conduct examination that is being performed on Greenpath and the frequency with which the HMO Model Act requires state insurance departments to conduct an examination of an HMO's operations.

Options:

A.

Type of examination: comprehensive; Required frequency: annually

B.

Type of examination: comprehensive; Required frequency: at least every three years

C.

Type of examination: target; Required frequency: annually

D.

Type of examination: target; Required frequency: at least every three years

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